Annotation

Historically foreign investors preferred not to turn to local jurisdictions for investment disputes settlement. Starting from the Chorzow dispute settlement in the Permanent Court of International Justice and Consular jurisdiction, investors tried commercia arbitration. After World War 2 and then many ex-colonial territories became independent states and declared sovereignty over natural resources. The Washington convention became an instrument for settlement of the disputes between states and investors. The reform of the ISDS mechanism sometimes is understood as preliminary step before supranational court for settlement of investment disputes. At the same times the developing countries approve legislation providing for the national jurisdictions. Mediation is the way of achieving compromise between private investors and national states.